IRA Compliance Issues targeted by IRS
The following is a current recommendation by the Treasury Inspector General for Tax administration (TIGTA), with obvious implications:
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Treasury/IRS
Among the reports issued by TIGTA were:
IRA Compliance. TIGTA recommended that IRS management adopt a broader strategy to address growing noncompliance with individual retirement account (IRA) contribution and distribution requirements (A Service-Wide Strategy Is Needed to Address Growing Noncompliance With Individual Retirement Account Contribution and Distribution Requirements (Reference Number: 2010-40-043)).
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Permalink Submitted by mk foss on Wed, 2010-05-19 23:27
There was an IRS proposal in 2008 or 2009 to develop an audit program that compared Form 5498 filings with 1099R reports but it hasn’t been adopted yet that I’m aware of. I found it on the irs.gov website under the pension section. This directive may give the earlier proposal some legs.
Permalink Submitted by Jose Morales on Wed, 2010-05-26 18:20
Here is the full report if anyone wants to read: [url]http://www.treas.gov/tigta/auditreports/2010reports/201040043fr.pdf%5B/url%5D
I would actually look forward to the IRS stepping up education and enforcement in this and many other areas. It’s hard to impress upon people that they should follow IRS regulations when they never see anyone suffer consequences for not following the letter of the law.